Fidesz courts young voters with new student loan scheme

The government is seeking to win over young voters by modifying the student loan program, reports Magyar Nemzet.

According to a Tuesday statement, at the recommendation of Fidesz’s youth chapter Fidelitas, the government will abolish interest in the case of the so-called Student Loan 2 covering tuition fees, and increase the amount of the general purpose Student Loan 1 available monthly from HUF 50,000 (USD 190) to HUF 70,000 (USD 270). The daily argues that this might be a sign of campaign spending, as last year in an interview Student Loan Center CEO Csaba Bugár told Magyar Nemzet they are not planning to increase the available credit line.

This is not the first modification of the Student Loan program this year. In May the government introduced various benefits for pregnant women with student loan debt as an inducement to have children. From 2018 pregnant women will be entitled to request the suspension of their repayment obligation from the third month of their pregnancy. Women who are pregnant with their second child will only have to repay half of their debt, and the debt of those who are pregnant with their third child will be forgiven.

Sine the founding of the Student Loan Center in 2001, as of Janaury 30, 2017 some 355,589 students requested the general purpose Student Loan 1. Since its introduction in 2012, some 25,856 students have requested Student Loan 2 covering tuition fees.